All Forum Posts by: Matthew King

I was in a similar position about two years ago and ended up going with the pet owners after talking with them for awhile and realizing they were clean and well taken care of people.  That's not always the case though and for my area the rent they were paying pretty much eliminated any low hanging fruit. 

I'm sure given the choice again I'd be hesitant again though just because the potential is there for animals to ruin things.

I'm in the process of one now.  40K invested with original purchase price, materials, labor cost, holding costs, etc.

If I make 20k in the end I'll be ecstatic. 

I looked but found nothing that really answered my question.

I have a small home in a class C area, just a small area outside of town with little commerce and mostly quiet area.  The house is remodeled but like I said, its small at about 1400 square feet and comps are around 75-90 thousand.

I have been approached with wanting to contract sale, honestly I always say no but didn't know if anyone had pros or cons they could share?

When I sold my last Primary residence I did a FSBO and ultimately had a buyer agent bring me a client. We sold the house to them and we negotiated a lower than standard percentage because I wanted to sell and they wanted to buy, and the agent want any cash over no cash.

Win/Win/Win

The question of how low is too low is simple whether you are flipping a car, a house, or anything of value.  You run the numbers, if the numbers make sense at a specific price point to make money worth your time then thats your limit, if not.......then its not for you.  Dont be unreasonable, but the most they can say is no.

For FHA I don't know but for a traditional loan why would it matter? Rules for FHA may be different, but as long as you pay yoru captial gains tax on profit who cares how long you have owned it?

Waiting for experienced flippers to chime in.  

I'm just guessing you're responsible whether they are paying rent or not if its' your property?

We had this happen on a recent sale.  I was at my bottom price so the realtor took a small cut to make the deal work, it worked out great in the end.

I think its fair to do some work your self if you are working on a limited budget or you have the time (especially if you are just starting out). However, thinking long term.............go ahead and work to build a team so you and make more deals and spend less time painting and laying flooring.

Agreed, I've never had to deal with it but it sounds like that is the best option.  What happens if they end up needing to live there for months?